Prior research has shown that Black-owned businesses received a significant — but very short-lived — increase in venture capital investments following the onset of the Black Lives Matter movement in 2020. A new study from Candid and ABFE – A Philanthropic Partnership for Black Communities has found a similar pattern in the amount of funding directed toward Black-led nonprofits.
Drawing from historical grants data from 2016–2023, the authors found that, on average, half of Black-led nonprofits in the U.S. received a foundation grant in a given year compared to 70 percent of other nonprofits. Just one-third of Black led-nonprofits received general operating support during this time period.
Furthermore, Black-led nonprofits that did receive foundation funding were awarded fewer total grants annually compared to other organizations. They also received a smaller share of the grants they applied for, with smaller nonprofits receiving just 34 percent of the grants they submitted.
From 2020–2022, there was a notable increase in private foundation funding directed toward Black-led nonprofits; however, the majority of this funding went to a small group of large organizations with over $1 million in expenses. By 2023, foundation funding at Black-led nonprofits had declined. The majority of Black-led nonprofits with less than $1 million in expenses experienced little to no funding change following the Black Lives Matter movement.
Unlike other organizations, smaller Black-led nonprofits received most of their grant dollars from first-time funders rather than pre-existing foundation partners. Nearly half of these organizations had only one funder at a time.
“The bridges we build today will determine the path laid out for the next generation of Black leaders and communities,” the authors write. “They can either face the same barriers documented in this report, or they can inherit a philanthropic sector that more authentically and consistently values their contributions. This report is an invitation — to foundations interested in supporting Black communities and Black-led nonprofits committed to their missions — to build lasting bridges together.”
